In our wonderful Spain, depending on the Autonomous Community to which you belong, receiving an inheritance can be a poisoned dart for our economy.
And I say poisoning because there may be cases in which you do not have money to pay the dreaded and unfair Inheritance and Gift Tax .
Preparing the acceptance of Inheritance: Taxes
After going through the bad luck of the loss of your family member, the return to normality comes. This return to normalcy entails carrying out the inheritance procedures (if there is one).
All this process, the reading of the will and the acceptance of the inheritance will be carried out before a notary.
If the deceased person had made a will, the procedure will be quick, in the event that this document does not exist, a declaration of heirs would have to be made as a prior act of acceptance.
In the first place we must request the death certificate after 24 hours, normally the management company will make this management of the funeral home requesting the Civil Registry.
After 15 working days of death, you must request the certificate of last wills and the registration of contracts and insurance in the City Court.
We will need to have a copy or original of the will and present all this documentation to a Notary Public.
If there is no will we will have to make a Declaration of Inheritance.
The purpose of this Declaration of Inheritance is what its own word indicates "Declare" to everyone that the deceased person disposes of his assets to his direct heirs.
This Declaration will last one month and is a method used for a possible appearance of another heir. These Declarations of Inheritance are published in the BOE
After the process of reading or of the Declaration of inheritance, the inheritance will be accepted, which will be the act in which the heirs receive the inherited assets and liabilities.
Calculating Inheritance Tax
Where is the inheritance tax paid?
Today it can be common that the heirs are not resident in the same city as the deceased.
The tax rule of territoriality obliges to file the tax in the Autonomous Community where the deceased had his habitual residence at the time of his death.
The document that identifies the liquidation of the inheritance tax is Form 650 that each heir will have to complete.
In the same act of acceptance of inheritance, the manager of the notary will prepare the calculation of the Inheritance Tax and the Municipal Capital Gain Tax.
In order to calculate the property taxes from the inheritance, the first question that arises is to know the real value of the inherited property .
To have a reference of the value of the inherited property we can help ourselves with three factors:
- Cadastral value of the property
- Acquisition value of the property
- Tax value or verified by the Property Treasury
To know the appropriate amount (and not have problems with our friend Public Treasury), you must request this value to indicate it in the settlement of the ISD.
But since we are very smart and we are Internet machines, we can connect directly and calculate the tax value through our community website.
An example: We are going to calculate how much an Andalusian would have to pay in Cádiz and more specifically in Chipiona (which is fashionable)
We connect to the website of the Andalusian community .
We will enter the data that you see on the screen for Fiscal Year 2014, Month 9, Day 24, Cádiz Province, Chipiona Municipality and press the Continue button.
We will indicate the cadastral value of the property (we consult it in the IBI receipt) to consult for example € 89,000 and Accept.
And finally, it will indicate the minimum value that the property has and that you must include in the tax settlement.
The tax value of the consulted property is € 108,580.
Here you have a series of links of the different communities where you can calculate the tax value of urban and rustic properties.
- Castilla la Mancha
- Castilla Leon
- Catalonia (calculated using a coefficient)
- The Rioja
Note: For the Basque Country and the Canary Islands, you must go to the offices and consult it directly.
Inheritance and gift tax model
The model that you have to request to fill in the tax is model 650/651 equivalent to the autonomous community where you are going to file the tax settlement.
In the event that we have "the fortune to pay" (it is an irony), to settle the inheritance and gift tax it may happen that we have to pay a fortune.
And it turns out that we are heirs of a large case but we have € 0.0 in our bank account and our “friend” Treasury asks us to place € 28,930.
What do we do now?
There is no way out, no friends or my own resources, I have to ask for a loan to pay for an inheritance but the bank will tell me no (the other day I asked for one to buy a BMW).
At present we cannot ask the bank for this money because until we have made the adjudication and payment of the accrued taxes we will not have access to the inherited properties.
The bank does not currently generate a mortgage on our inheritance rights (before if it did) so we have a problem.
We have two final options:
- Give up our inheritance.
- Go to a private lender and company that leaves us the money for the inheritance expenses.
A private lender can advance the money to us and allows us to put the inherited properties in our name so that we can later sell them or mortgage them.
Click here if you need to consult more information about Legal.
This article has collected information from the following media:
- https://eacnur.org/es/sucesion- tax-y-donaciones-que-es-y-que-necesitas-saber
- https://www.libremercado.com/2018-02-19/la-voracidad-del-impuesto-de-sucesiones-me-han-quitado-hasta-los-3-euros-que-tenia-en-la- account-1276614011 /
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